Kimberly Clark De Mexico... (PK) (USOTC:KCDMY)
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Local Citigroup (C) unit Banamex said Thursday that the peso's recent appreciation versus the dollar is good news for Mexican consumer companies that have significant dollar-denominated costs.

In less than two weeks, the exchange rate has fallen from above 15.50 pesos to the dollar to less than MXN14 to the dollar, though the peso gave back some of those gains Thursday to close at MXN14.1775.

Banamex said in a report that a peso worth MXN14 to the dollar implies a 7% appreciation from the end of February and that a number of local companies have dollar costs that represent as much as 40% of their total cost of sales.

"This translates into savings equivalent to 2.7% of those costs," Banamex said.

The main beneficiaries of a stronger peso include poultry producer Bachoco (IBA), restaurant operator Alsea (ALSEA.MX), and consumer products company Kimberly-Clark de Mexico (KCDMY), Banamex said.

Companies that have open positions in exchange derivatives, namely corn flour and tortilla company Gruma (GMK), could also see reduced losses.

"The recent appreciation of the peso favors Mexican consumer companies in general, although we don't discard periods of volatility in the exchange rate," Banamex said.

Banamex said the exchange rate benefits are secondary, however, to consumer demand, which is expected to fall as the economy contracts this year and credit becomes scarcer.

-By Paul Kiernan, Dow Jones Newswires; 5255-5001-5726, paul.kiernan@dowjones.com